Metro Bank share price: downtrend looks to provide shorting opportunity
Metro Bank has been on the slide over the past year, and until we see otherwise, further shorting looks the best bet for now.
Metro Bank shares continue rollercoaster ride
Metro Bank shareholders have been on a rollercoaster the past three years, with the challenger bank's share price gaining 86% over the first year after its initial public offering (IPO), only to decline 94% in the 17 months that followed. That has seen the shares hit a record low every week for the past six weeks.
This week is no different, with the weekly chart highlighting this incredible downtrend. That downtrend has been incredibly reliable, yet recently the price action has been relatively subdued as exhibited by the tightening Bollinger band. That points towards a potential rebound coming into play before long, yet even if that does occur, we would need to see a break through the £8.96 resistance.
Downtrend presents shorting opportunity
The hourly timeframe highlights the finer details of this downtrend, with the price creating lower highs and lows on a regular basis. With that in mind, we have a clear threshold at £2.99 which must be overcome to bring a bullish short-term signal. Until that happens, short-term upside can bring a good selling opportunity within the Fibonacci retracement zone of £2.82-£2.91.
Interested in shorting stocks? Find out more on how to do this with IG, or open an account to get started.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
